Increased Loan Facility of $11.75M

i(x) Net Zero PLC

03 November 2023

 

The information contained within this Announcement is deemed by i(x) Net Zero plc to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

3 November 2023

i(x) Net Zero PLC

("i(x) Net Zero" or the "Company")

Increased Loan Facility of $11.75 million

i(x) Net Zero PLC (AIM: IX.), the investing company which focuses on the Energy Transition, is pleased to announce that that its wholly owned subsidiary, i(X) investments LLC has entered into a restated and amended secured two year term loan facility with European Depositary Bank S.A. ("EDB") ("Loan") increasing its loan facility by $4.25 million ("Increased Facility Amount") from $7.5 million to $11.75 million. The Loan, once drawn, bears interest at 10.5% coupon (subject to periodic change in line with EDB's USD Base rate) which is payable quarterly. The Loan can be utilised for, inter alia, the purposes of the financing of investments and general working capital purposes. The Loan is guaranteed by the Company.  

 Drawdown of the Loan is conditional upon there being no event of default and other customary provisions including delivery of documents.  The Loan is repayable together with default interest in the event of  default which, inter alia, includes a change of control and a reduction of aggregate NAV of the Company below $125 million and $100 million in respect of WasteFuel. Out of the Increased Facility Amount of $4.25 million, an initial drawdown amount of $3.0 million is subject to the fulfillment of the general terms, a subsequent drawdown amount of an additional $1.25 million will become available for drawdown from March 2024 and is subject to fulfilling additional conditions, including the share price performance in the previous four months prior to drawdown and the NAV of Wastefuel remaining above a certain threshold.  Undrawn amounts are subject to a commitment fee and the Company has also agreed to pay an arragement fee.

The Loan is secured by a pledge granted by the Company and its nominee of the shares held by it including those in i(x) Investments LLC and all other proceeds and property and assets owned by it. In addition, as part of the initial Facility Agreement, i(x) Investments LLC pledged $4.0 million as a security at a deposit account with EDB. The Company invested this security deposit in certain money markets funds and other financial instruments and generated a return on deposited funds (currently expected to be approximately 5-6% per annum) thereby mitigating the interest payable. In addition, i(x) Investments LLC has undertaken to maintain a minimum cash balance in an operating account with the amount varying depending on the remaining time to facility maturity but being zero if draw downs total less than $4 million.

In connection with the facility, i(x) Investments LLC has also agreed to give customary undertakings, warranties and indemnities to the Lender, the Agent and Security Agent including as to tax and undertakings not to undertake certain corporate transactions without consent.

Under the initial Facility Agreement the Company had drawn $2.6 million as at 3 November 2023. 

Pär Lindström, Chief Executive Officer of the Company, said: "The increased loan facility will allow management to maintain its focus on scaling the business, following the recent addition of Citron Energy to the portfolio. We are actively looking at a number of opportunities in the green energy sector both in and outside of the existing portfolio. We are focused on businesses where we believe we can deploy our hands-on strategic management, resources and infrastructure, helping to build and develop these investments into successful contributors towards a net zero future."  

- Ends -

For further information visit https://ixnetzero.com/ or contact:

i(x) Net Zero	Via Buchanan below
Pär Lindström - Chief Executive Officer
Canaccord Genuity Limited Nominated Adviser & Broker	[phone]
Max Hartley
Harry Pardoe
Buchanan
Helen Tarbet	[phone]
Simon Compton	[phone]

Notes to Editors

About i(x) Net Zero PLC

i(x) Net Zero PLC is an AIM quoted investing company that seeks to provides its shareholders with the opportunity to create long-term capital growth with positive, scalable, measurable and sustainable impact on the environment and on the communities it serves.

In accordance with its belief that the world's biggest problems are also the biggest market opportunities, i(x) Net Zero focuses on two critical areas in which it aims to make a positive impact: (i) Energy Transition and (ii) Sustainability in the Built Environment.

The Company uses a multi-strategy investment approach, providing the companies in which it invests with the expertise and catalytic capital to help them grow. To date, i(x) Net Zero has invested in biofuels, direct air capture (carbon removal), renewable energy, sustainable workforce housing and net zero construction technology.

i(x) Net Zero is a  signatory to the UN Principles for Responsible Investing. 

The Company has received the London Stock Exchange's Green Economy Mark.

 

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